MoneyWorks4Me

Check Before You Invest : Harshdeep Hortico Ltd

BSE: 544105 NSE: ISIN: INE0OLZ01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Harshdeep Hortico Ltd belong to?
Harshdeep Hortico Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Harshdeep Hortico Ltd a good quality company?
Harshdeep Hortico Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Harshdeep Hortico Ltd undervalued or overvalued?
Harshdeep Hortico Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 10.87 15.54
Price to Book 2.27 2.99
Price to Sales 1.98 2.32
EV to EBITDA 7.03 9.60
Q.4 Is Harshdeep Hortico Ltd a good buy now?
Harshdeep Hortico Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.3% for FY-2026, which is above its 3-year median of 26.6%, indicating increasing margins.

Q.2 Operating Profit Margin of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.82% for FY-2026, which is above its 3-year median of 26.34% indicating increasing margins.

Q.3 Net Profit Margin of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Net Profit Margin is 18.22% for FY-2026, is above its 3-year median of 17.24%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 28.3 26.6
Operating Profit Margin (%) 28.82 26.34
Net Profit Margin (%) 18.22 17.24

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Return on Asset is 18.33%, which is in line with its 3-year historical median of 19.24%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Return on capital employed is 29.43% for FY-2026, which is in line with its 3-year historical median of 29.43%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Return on equity is 23.33% for FY-2026, which is in line with its 3-year historical median of 23.33%, indicating the business is making similar use of its shareholders capital.

Q.7 Cash conversion cycle of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Cash conversion cycle is 223 days, above its 3-year historical median of 167 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.01 1.12
ROE (%) 23.33 23.33
ROCE (%) 29.43 29.43
Cash Conversion Cycle 223 days 167 days

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Debt-to-Equity ratio is 0.07, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Harshdeep Hortico Ltd?
Harshdeep Hortico Ltd Debt to cash flow from operations is 1.2, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Harshdeep Hortico Ltd?

Q.1 Promoter shareholding and pledge status of Harshdeep Hortico Ltd?
Promoters hold 72.96% of the Harshdeep Hortico Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Harshdeep Hortico Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Harshdeep Hortico Ltd vs industry peers?
Harshdeep Hortico Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 1.95%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 2
Gross Profit Growth (%) 26.7 16.4
Operating Profit Growth (%) 33.3 14.5
Net Profit Growth (%) 30 21.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.01 1.13
ROE (%) 23.33 7.98
ROCE (%) 29.43 10.77
Cash Conversion Cycle (days) 222.64 76

Valuation & price assessment

Q.1 Stock return of Harshdeep Hortico Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -20.59% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -20.6%
Q.2 Valuation ratios of Harshdeep Hortico Ltd vs historical?
The current P/E ratio of 10.87 is lower than its historical median of 15.54, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 10.87 15.54 25.87
Price to Book 2.27 2.99 1.92
Price to Sales 1.98 2.32 1.59
EV to EBITDA 7.03 9.60 13.18

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: